Nine US banks shut down in 2010

Since the beginning of 2010, nine US banks have been forced to close in the toughest economic crisis since the Great Depression.

Regulators shut down five more banks on Friday in Florida, Missouri, Oregon, Washington and New Mexico. The five joined four other banks that were shut down earlier this year in Illinois, Minnesota and Utah.

The Federal Deposit Insurance Corp. (FDIC) took over the five banks: Premier American Bank in Miami with USD 350.9 million in assets and USD 326.3 million in deposits; Seattle-based Evergreen Bank with USD 488.5 million in assets and USD 439.4 million in deposits; Charter Bank, based in Santa Fe, New Mexico, with USD 1.2 billion in assets and USD 851.5 million in deposits and Bank of Leeton in Leeton, Missouri, with USD 20.1 million in assets and USD 20.4 million in deposits.

Beal Financial Corp., based in Texas agreed to assume the deposits and assets of Charter Bank. The FDIC and Beal Financial agreed to share losses on USD 805.5 million of the failed banks’ loans and other assets.

Umpqua Bank, based in Roseburg, Oregon, is assuming the deposits and assets of Evergreen Bank. The FDIC and Umpqua Bank agreed to share losses on USD 379.5 million of its loans and other assets.

The Washington-based Columbia State Bank agreed to buy the deposits and assets of Columbia River Bank. In addition, the FDIC and Columbia State Bank agreed to share losses on USD 697.4 million of its loans and other assets.

Last year, 140 failed US banks reached the highest annual level since 1992 in the wake of the savings and loan crisis.

“While the economy is showing signs of improvement, recovery in the banking industry tends to lag behind other sectors. We expect to see the level of failures continue to be high during 2010,” said Mitchell Glassman, director of the FDIC’s division of resolutions and receiverships, in a testimony before Congress.

According to Sheila Bair, FDIC Chairman, the main increasing driver of bank failures this year is trouble in the real estate sector.

The FDIC said it expects the total bill for bank failures to reach USD 100 billion for the period of 2009 through 2013.